With DriveX’s software, you will never again face unexpected dents when buying a new car

By Youri van Heumen

“Only in exceptional cases, buying a used car goes smoothly. The odometer is reversed, there are scratches present that are not in the photos, that one dent is just out of the picture or the engine does not even work,” says Rauno Sigur, CEO of DriveX. The thirty-two-year-old Estonian has built software that allows a car to be fully checked by taking several images. “This creates more transparency in the car industry and a lot less frustration for buyers because I speak from experience.” In this episode of start-up of the day, Sigur tells more about his solution.

How did you come up with the idea? 

“I am a car lover. At one point I saw a beautiful car in Sweden. I had set my sights on it and I had to have it. A few weeks after initial contact with the seller, I travelled to Sweden to pick up the car. On arrival, the car looked spick and span, but it turned out the engine had some major failures. That same day, I travelled again almost a thousand kilometres back to Estonia, but with a car which had some failures. The thought that I could have avoided this with an inspection technology that could have remotely inspected the car got me thinking quite a bit.

After talking a bit with two friends, we concluded that we could make this problem a thing of the past for everyone. At that realisation moment, it was the day before Christmas Eve. That’s when we decided to turn this idea into a business. And so, online and within less than ten minutes, we set up our own company. We started working immediately.”

What does the process look like?

“There is a car you want to have inspected. Then it is important to consider a few things. The number plate must be visible and the quality of the photos must be good. Blurry photos will not be accepted by the system. Next, you take a picture and upload it. The tool immediately starts analysing the images and shows you what is going on on the outside of the car within minutes. We are now working on training the software on technical defects.”

How does the system work?

“The basis of our application is an app that works on any mobile phone. Via an SMS or e-mail, you receive a link that asks you to take photos of the car you want to be inspected. The system shows examples of the different angles you need to consider. Should the photo not meet the guidelines, you will get feedback within three seconds with what needs to be improved. The system is already well-trained, but with high-quality photos, it gets even better. 

Once successful, our application checks the vehicle for physical damage. Think of cracks in the windows or scratches on the doors. In addition, we offer a personalised portal. In this environment, you get to see the conclusion of the inspection. The concluding report states whether there is damage and where exactly. You also get an accurate estimate of the amount you need to pay to have that particular problem repaired. You also get an estimate of the value of the car. This is explicitly focused on the market of the country in which the car is registered. We have also done this to prevent forms of fraud. Think of it as buyer protection.”

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Which target group do you focus on?

“The problem is a universal one. As a result, there is a lot of demand from different countries and markets. Now we are mainly working with insurance agencies, governments, and private and corporate car dealers. Moreover, we are already active in Croatia, Germany, Lithuania, Latvia, Estonia and Finland. One of our goals is to also be active in Poland, North America and the Netherlands. In the case of the Netherlands, we are still in the early stages.”

How do you differentiate yourself from competitors?

“There are several companies, mainly from Israel and the US, that focus on unilateral computer technology. We take it a step further and bridge the gap to the ability to implement multiple types of data. This gives our users a more comprehensive analysis of the state of the car. Moreover, any company and individual can create an account and then use it.”

What challenges did you have to overcome? 

“The main challenge was in identifying the perfect first customer. Companies that recognise this problem are more likely to want to try our application and then make it even better. Identifying the company that fits that best has been quite a task. We succeeded. We have already managed to secure several paying companies. 

Another challenge, which will be recognisable to many startups, is keeping the right mindset. Making a startup succeed requires a lot of perseverance and not taking no for an answer. After all, every no is another step closer to a yes, because there is always a way.”

What are your goals for the future?

“Earlier I mentioned that we are talking to other EU members. Such as organizations in the Netherlands, because we would like to be active over there. The goal is to enter the Dutch market this year. Another goal we have set is to have a positive cash flow. We expect that we should be able to achieve that this year.”

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